Being a YouTuber or influencer is now a real career for many people. Here’s how creators make money, the rules they have to follow, and why it’s harder than it looks.
The creator economy describes the people and businesses who make a living by producing content online, on platforms such as YouTube, TikTok, Instagram, Twitch and podcasts, along with the companies that support them.
Creators range from huge stars with tens of millions of followers to small niche accounts with a loyal following.
Brand deals
For most influencers, brand partnerships are the biggest source of income. Companies pay creators to feature or promote their products in posts, videos or livestreams.
Rates depend on the size and engagement of the creator’s audience, the platform, and the type of content. A post from a creator with a large, engaged audience can earn thousands or even hundreds of thousands of dollars.
Platform payments
Some platforms share advertising revenue with creators. YouTube’s Partner Program pays creators a share of the advertising revenue from their videos, more than half for long-form videos. TikTok, Instagram and Snapchat have their own programs, paying creators based on views or engagement, although these payments are often modest.
Subscriptions and tips
Many creators earn money directly from fans, through paid subscriptions, memberships, tips during livestreams, and platforms such as Patreon.
Affiliate links and products
Creators can earn commission when followers buy products through their links.
The most successful creators often build their own businesses, launching clothing lines, cosmetics, drinks or snack brands. Some, such as YouTube star MrBeast, have built businesses worth hundreds of millions of dollars.
The rules
In Australia, creators must make it clear when content is paid for or involves a commercial relationship. Hiding that a post is an ad can breach the Australian Consumer Law.
In a 2023 sweep, the Australian Competition and Consumer Commission found most of the influencers it reviewed had made posts of concern, and it has warned creators and businesses that it will take action against undisclosed advertising.
Creators must also declare their income, including gifts and free products received in return for promotion, to the Australian Taxation Office. The ATO has warned it is watching the sector closely.
Promoting financial products can require a financial services licence, and ASIC has taken action against “finfluencers” who gave unlicensed financial advice.
The challenges
Most creators earn little. Income can be unpredictable, platforms can change their rules or algorithms overnight, and burnout is common.
Supporters say the creator economy has opened opportunities for people to build businesses and audiences without traditional media gatekeepers.
